Plans by the Scottish National Party to introduce a minimum 45p price per unit on alcohol has failed.
It was voted down by 76 to 49 for the third and final time today.
As MSPs debated health secretary Nicola Sturgeon attempted to re-introduce minimum pricing into the legislation, but the Scottish parliament voted against it.
Trade reaction was swift. Simon Litherland, managing director, Diageo Great Britain, welcomed the move.
He said: "We firmly believed minimum pricing was not an effective solution in tackling alcohol misuse.
"The debate has clearly moved on and now we can look forward to working collectively with other stakeholders in Scotland and the UK to support targeted interventions which can make a real difference to dealing with the problem of alcohol misuse."
A SABMiller spokesperson said: "Reducing problem drinking is an important goal for Scottish politicians.
"Today's rejection of minimum pricing from the Alcohol Bill shows that MSPs have taken to heart the findings of key research, which shows that heavy drinkers would only reduce their consumption by one pint a week if a minimum price of 45p a unit was introduced.
"To make a genuine impact on Scottish health and society and shift the nation's attitude to alcohol, policymakers need to focus on effective solutions such as the strict enforcement of existing laws to crack down on underage drinking and antisocial behaviour."
While trade association Scotch Whisky Association called on all parties to work together on alternative tax-based measures.
SWA chief executive Gavin Hewitt said: "Now that minimum pricing has been rejected, we call on all parties to come together to build consensus around alternative, more effective, legal tax-based measures to address alcohol misuse.
"Reform of the UK excise duty system so that all alcohol is taxed on a fair and responsible basis, according to alcohol content, offers that opportunity."